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Meta Warns Revenue Model Changes Could Harm User Experience

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Meta faces a €200M fine from the EC over its ad-free subscription model, which it claims could harm user experience if altered. The company may adjust its approach while appealing the decision.

Meta Warns Revenue Model Changes Could Harm User Experience
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Meta has criticized the European Commission following a fine for violating the Digital Markets Act (DMA). The Commission argues that Meta's ad-free subscription model is too restrictive. However, Meta CFO Susan Li warns that adjusting the revenue model could severely degrade user experience and impact European revenue.

Meta recently introduced a model allowing users to choose between a monthly subscription or data sharing for personalized ads. The EC fined Meta €200 million, stating the model fails DMA compliance. Meta may adjust its system pending appeal but warns of negative effects by Q3 2024.

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